Foreign equity ownership in Hyundai Mobis has surpassed 43%. This is the first time since 2021. Kiwoom Securities noted on the 26th that Hyundai Mobis' stock price continues to rise under foreign influence, while the movement of domestic institutional investors is a key point.
Foreign equity ownership in Hyundai Mobis rose more than 9 percentage points over three years from a low of 33.9% at the end of June 2022. This indicates that steady supply and demand continue, even if it is not explosive.
Shin Yoon-cheol, a Kiwoom Securities researcher, said, "While the automotive sector is being sidelined in the KOSPI index rally, Hyundai Mobis' stock price is the most steadily on the rise within the sector."
The problem is that domestic institutions are not actively increasing investments due to concerns about profit declines in completed vehicle-related stocks. For example, the National Pension Service (NPS)'s announcement regarding changes in its equity stake in Hyundai Mobis was last on Jan. 30, 2023, stating that it reduced its stake from 11.99% to 8.5%.
The size of reinvestment funds for exchange-traded funds (ETFs) related to Hyundai Mobis is also less than 2% of its market capitalization. This is lower compared to the average of 2.48% for common stocks within the top 20 by market capitalization in the KOSPI market.
Shin also noted, "While the global ETF market continues to grow, Hyundai Mobis is a challenge that needs to be addressed as it has not been significantly included."
He added, "Ultimately, the trigger for (the stock price) will be a change in the perspective of domestic institutions toward Hyundai Mobis," and expressed hope that the company would share plans to enhance corporate value rather than just performance at the CEO Investor Day scheduled for Aug. 27.